Citizens South Banking 8-K East Coast Financial Services Conference

Citizens South
Banking Corporation

Sandler O'Neill + Partners, L.P.

East Coast Financial Services Conference

Aventura, FL

November 10-12, 2010

Forward Looking Statements

Statements contained in this presentation, which are not historical facts, are
forward looking statements.The Company’s senior management or directors may
from time to time make public forward looking statements concerning matters
herein.Such forward looking statements are estimates reflecting the best judgment
of senior management or the directors based on current information. A number of
factors that could affect the accuracy of such forward looking statements are
identified in the public filings made by the Company with the Securities and
Exchange Commission on Forms 10-Q and 10-K.The Company undertakes no
obligation to publicly revise any forward looking statements to reflect events and
circumstances that may arise after the date hereof. There can be no assurance the
such factors will not affect the accuracy of such forward looking statements.

Agenda

•   Overview

•   Strategy / Markets / Management

•   Financial Performance

•   FDIC-Assisted Acquisition of

     Bank of Hiawassee

•   2010 Outlook

•   Q & A

Overview

•  Largest community bank headquartered in Charlotte region

   •   Assets of $1.1 billion

   •   16 offices in Charlotte region - 5 in North Georgia

•  Founded in 1904

   •   Converted from a MHC in 1998

   •   Fully Public in 2001

•  Three acquisitions since 2001 (one FDIC-assisted)

Investment Highlights

•     Attractive branch footprint in growth markets

•     Experienced management team

•     Strong asset quality and capital position

•     Proven acquirer and integrator

Citizens South Headquarters

Current Locations

Market Area-2010

Charlotte Market Data

•     Eight Fortune 500 companies are headquartered in Charlotte.(1)

•     Housing prices in the market have stabilized.(2)

•     Increasing business diversification is a source of strength.

       •     NASCAR

       •     Energy

       •     Technology

(1)Charlotte Chamber of Commerce

(2)Case-Shiller home-price index, April 2010

Experienced Management

Name and Experience

Financial Performance

Balance Sheet (000’s)

Quarterly Financial Performance

Stock Information

Non-Covered Loan Portfolio
Composition (000’s)

Asset Quality

Non-covered NPL’s by Type
(000’s)

Deposit Composition (000’s)

Net Interest Margin

Note:Net interest margin is calculated on a fully tax equivalent basis.

FDIC-Assisted Acquisition of

Bank of Hiawassee

Bank of Hiawassee Acquisition

•        Closed March 19, 2010

•        Five offices in North Georgia along North Carolina border

•        Bank of Hiawassee had over $300 million in assets

•        Approximately $227 million in loans

•        Approximately $295 million in deposits

•        Located in Northeast Georgia

•        Over 100 year old with “sticky” deposits

•        FDIC assistance created $10 million after-tax BPO

•        $15 million capital raise - private placement

Georgia Franchise

•     Successfully hired experienced

       North Georgia management

•     Data Conversion - July 23,

       2010

•     $6.0 Million estimated cost

       saves

•     80% / 95% FDIC loss-share

       agreement

•     Numerous additional FDIC-

       assisted opportunities in North

       Georgia to fill out franchise

       footprint

2010 Outlook and Priorities

Long Term Objectives

•     Create the dominant community banking franchise in our markets

•     Focus on gathering core deposits

•     Asset Quality - Job One

•     Personal attention to our customers

•     Pricing and growth discipline

•     Continued interest in FDIC-assisted acquisitions

•     Repay TARP

•    Capital Strength

•    Asset Quality

•    Strong Core Deposit Franchise

•    Market Share Strength

•    Experienced Management Team

•    Opportunistic Position

•    Attractive Valuation

Why Own Citizens South Stock?

Thank You

We appreciate your interest in

Citizens South Banking Corporation

Contact Information

Citizens South Banking Corporation

Nasdaq: CSBC

519 South New Hope Road

Gastonia, NC 28054

For More Information Contact

Kim S. Price

President and Chief Executive Officer

Citizens South Banking Corporation

(704) 884-2260

Welcome to the South

Banks used to be symbols of
responsibility and security.

For us, they still are. Thank you
for your interest in Citizens
South Banking Corporation.